NBC refutes Apple's price claims, pledges iTunes shows

NBC Universal has rejected claims by Apple that it wanted to more than double the price of TV shows on iTunes — and has also contradicted threats that new NBC shows would disappear from the iPod maker's online store.

In a statement to the press, NBC flatly dismissed Apple's contention that the TV studio's ultimate goal had been to charge $4.99 per show, more than twice as much as today's $1.99 rate. The actual goal has been to institute "flexibility in wholesale pricing" and bundle shows together in more "attractive" ways, said NBC's executive vice president of communications, Cory Shields.

The studio also insisted that all of its existing shows would see new episodes available for sale through iTunes in spite of Apple's declaration mid-Friday that it wouldn't carry updated NBC programming for the fall season. The company did not say how it intended to force Apple to agree to the terms, but appeared to use its existing contract as leverage.

"We want consumers to know that all our returning series, including new episodes, will be available on iTunes through the remainder of the contract, which expires in early December," said Shields. "Our content is also available on NBC.com, Amazon.com, and the soon-to-launch hulu.com."

The statement reiterates NBC's cautious approach to renewing its contract with Apple, leaving a window open for the the two firms to resolve their dispute before the end of the contract. But in a counter to Apple's own allegations, NBC argued that its would-be partner was the unreasonable firm in the dispute, attempting to keep prices at its media store fixed in a way that favors sales of iPods and iPhones above the shows themselves.

"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."

The confirmation of variable pricing as a sticking point for NBC reveals the seriousness of the issue for its parent company Vivendi. July saw NBC's sister company Universal Music Group drop its long-term contract for iTunes music, choosing instead to offer music "at will" so long as Apple maintained its flat 99-cent song pricing. Warner Music and other larger labels have also made similar arguments, but aren't known to have abandoned their own contracts.

"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."

Really? Then how do you explain Amazon selling the same content for the SAME price?? These executives take the masses for a bunch of idiots. The reason for all of this is to hike up the prices on iTunes ahead of the October launch of NBC and Fox's Hulu.

This war can be traced back to Universal demanding a cut of all iPods sold. Microsoft gave in and they are pissed that Apple said no way.

The above statement makes it clear that Shields thinks that they diserve all your money. After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!

I think they wanted $4.99 for some and $1.99 for others, so it isn't "binary."

Both NBC and Apple are assuming they know what the consumer wants. Both can be stubborn, but Apple is alot smarter about it and knows that people want to take media on iPods, on TV's and on computers while NBC still thinks media is only about online computer streaming video. It is like the record companies who want digital media to exist in a manner that they can "pull the plug" on when they feel they are losing control.

"After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!

Hey, why are you getting down on the people who are making the content? They're not the ones doing this; in fact, a lot of them are on the side of the angels. And most of the gaffers I know in TV and movies don't make 120K. You must know some really veteran gaffers with major seniority and a great exchange rate.

I agree that its not binary, but Apple isn't interested in promoting consumer confusion in its own marketplace. This idea that people need to scout around looking for "deals" is stupid. Apple decided that songs on iTunes was 99 cents here in the U.S. that's the price of a song, and I'm sure they've defined a song further by its length. I've been looking at Amazon too. If NBC's proposals are so consumer-friendly, they should start forcing Amazon to take on these new "ideas" for "bundles" and "flexible pricing". In some ways they have.

I've seen some things on Amazon cheaper than on iTunes, but other things MORE expensive. That indecisiveness was enough to make me stop looking. Everytime I see a DVD with little extras selling at Best Buy for $19.99 or $24.99 I scowl and keep moving. I keep thinking "Are you people HIGH?" Then I see the standard prices in supermarkets starting to excite people with a $9.99 and 2 for $15 bin.

Honestly, I'd by more movies if they all just cost $9.99. Really... I'd just BUY and BUY and BUY and BUY. As it is, I skulk around looking for this kind of pricing. If certain tv shows on iTunes started becoming $4.99, I'd probably browse less. I'd even want a feature that ONLY shows me $1.99 or less tv shows, because seeing anything higher would simply be annoying to even see.

If NBC is ending its deal with Apple... they should insert half-seasons into iTunes. It ruins the "season-pass" feature, and forces Apple to simply shut it off for NBC shows. If I used that feature, it'd be irritating to think I'm paying more per episodes knowing that I won't be able to finish the series.

Unless NBC changes their mind and re-signs, I really hope the new seasons of these shows don't appear. NBC's mad because they don't have their new venue in place yet, and it will be a clear "hiccup" where people will simply be unsatisfied. On the otherhand, if Apple waits until December, the decisions will all be made, and Apple will be holding the bag with irate customers caught in mid-season. It would be stupid.

"NBC flatly dismissed Apple's contention that the TV studio's ultimate goal had been to charge $4.99 per show."--No, their intention was to incredibly raise their wholesale pricing without taking responsibility for the consequences. Talk about spin.

"...bundle shows together in more "attractive" ways"--What's more attractive than buying exactly what you want for an attractive price? Maybe... buy Heroes, get a free Taurus?

NBC could have used this opportunity to save face, but instead calls Apple the meanie, reiterates that their shows are only committed until December, and plugs their hulu venture and other retailers.

This reminds me of when people apologize for something and say, "I'm so sorry that YOU felt hurt."

The confirmation of variable pricing as a sticking point for NBC reveals the seriousness of the issue for its parent company Vivendi. July saw NBC's sister company Universal Music Group drop its long-term contract for iTunes music, choosing instead to offer music "at will" so long as Apple maintained its flat 99-cent song pricing. Warner Music and other larger labels have also made similar arguments, but aren't known to have abandoned their own contracts.

Yikes, there some embarrassingly SERIOUS factual errors in this report.

NBC-Universal is owned by GE. (Vivendi sold the Universal film/tv division to GE a few years ago, for $14 billion.)

Universal Music, on the other hand (as I recall; I have not looked this up prior to writing, but I am nearly 100% sure) is still owned by Vivendi.

I don't think that the "Universal" that belongs to NBC (film/video) has anything to do with the "Universal" that belongs to Vivendi (music) -- they are not "sister companies."